Its an All or nothing deal.
as a bad example
If you walk into wal-mart, and then try to run out while trying to steal $100 worth of stuff, wal-mart is not liable or has any reason to let you in their store again, or any reason to reimburse the cellphone that got broken in the struggle, or your broken arm. Even though your phone wasn't related to the theft, they still have no reason to replace it.
At least x10 will let you back after breaking the rules.
Noe
Let me quote some parts:
(these you are familiar with)
Illegal Material: This includes copyrighted works, commercial audio, video, or music files, and any material in violation of any Federal, State, or Local regulation. You may not store copyrighted Mp3s or videos on your webspace in any way shape or form.
File Storage: Accounts are not to be used for file storage, your account will be permenantly suspended if found to be breaking this rule. Downloads are only allowed on your x10Hosting account if they have to do directly with your website. e.g. you developed custom software and are selling it or giving it away. Accounts may not be used for mirrors, game file hosting, or any other type of file hosting not specified here.
Now for some more parts that are related:
x10Hosting reserves the right to cancel any service provided at any time.
Backups are the sole responsibility of the customer. x10Hosting retains and offers backups to the customer but does not guarantee this service from failure. It is recommended all customers keep their own backups.
With those last 2 clauses, x10 can suspend your account without offering a backup.
On a side note: X10 or any free host is the worst place to store backups.
Go out to the store, spend $20 and get a flash drive and store backups on it.